Semtech (NASDAQ:SMTC) Sees Large Volume Increase on Earnings Beat

Semtech Corporation (NASDAQ:SMTC) shares saw unusually-strong trading volume on Wednesday following a better than expected earnings announcement. Approximately 2,623,319 shares changed hands during trading, an increase of 17% from the previous session’s volume of 2,244,731 shares.The stock last traded at $160.5480 and had previously closed at $164.46.

The semiconductor company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.45 by $0.06. The firm had revenue of $291.00 million during the quarter, compared to analysts’ expectations of $283.53 million. Semtech had a positive return on equity of 18.09% and a negative net margin of 3.86%.The business’s quarterly revenue was up 15.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.38 earnings per share. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS.

Key Stories Impacting Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech beat first-quarter expectations, reporting EPS of $0.51 versus $0.45 expected and revenue of $291 million versus $283.5 million expected, with revenue up 15.9% year over year. Semtech Announces First Quarter of Fiscal Year 2027 Results
• Positive Sentiment: The company issued second-quarter guidance above Wall Street estimates, calling for EPS of $0.59 to $0.63 and revenue of $323 million to $333 million, signaling continued momentum. Semtech earnings and guidance report
• Positive Sentiment: Management and analysts pointed to accelerating demand in data center and optical products, including 800G FiberEdge and 1.6T ramps, which suggests growth could stay strong. SMTC Q1 Earnings Call Flags Faster Data Center Growth
• Positive Sentiment: Several analysts raised price targets after the results, including Needham to $200, Baird to $225, and UBS to $225, reinforcing a more bullish outlook for the stock. Semtech Price Target Raised to $225 as Data Center and Optical Growth Accelerate, Buy Rating Reiterated
• Neutral Sentiment: Northland Securities downgraded Semtech to market perform before the earnings release, but that call appears to have been overshadowed by the stronger-than-expected quarter and raised guidance.

Analyst Upgrades and Downgrades

SMTC has been the topic of several research analyst reports. Citigroup lowered shares of Semtech from a “buy” rating to a “market perform” rating in a research report on Tuesday. Needham & Company LLC upped their price target on shares of Semtech from $105.00 to $200.00 and gave the company a “buy” rating in a research note on Wednesday. Oppenheimer set a $200.00 price target on shares of Semtech in a report on Wednesday. Roth Mkm restated a “buy” rating and set a $190.00 price objective on shares of Semtech in a report on Wednesday. Finally, Craig Hallum upped their target price on Semtech from $80.00 to $105.00 and gave the company a “buy” rating in a research report on Tuesday, March 17th. Thirteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $159.87.

Insider Activity

In related news, Director Paul V. Walsh, Jr. sold 500 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $138.21, for a total value of $69,105.00. Following the completion of the sale, the director directly owned 23,279 shares in the company, valued at approximately $3,217,390.59. The trade was a 2.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Martin Burvill sold 2,500 shares of the stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $88.98, for a total value of $222,450.00. Following the sale, the director directly owned 4,409 shares in the company, valued at $392,312.82. This represents a 36.18% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 36,884 shares of company stock worth $3,069,245. Insiders own 0.48% of the company’s stock.

Institutional Trading of Semtech

Several large investors have recently modified their holdings of the stock. Think Investments LP bought a new position in shares of Semtech in the third quarter worth $58,618,000. Ameriprise Financial Inc. lifted its position in Semtech by 10.3% during the second quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company’s stock worth $321,040,000 after purchasing an additional 666,456 shares during the period. Atreides Management LP bought a new stake in Semtech during the second quarter worth about $29,880,000. Westfield Capital Management Co. LP grew its stake in Semtech by 23.0% during the third quarter. Westfield Capital Management Co. LP now owns 3,380,373 shares of the semiconductor company’s stock worth $241,528,000 after buying an additional 633,113 shares in the last quarter. Finally, Assenagon Asset Management S.A. increased its holdings in Semtech by 323.0% in the 1st quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company’s stock valued at $60,051,000 after buying an additional 596,373 shares during the period.

Semtech Trading Down 3.1%

The firm’s fifty day simple moving average is $104.05 and its 200 day simple moving average is $87.58. The stock has a market capitalization of $14.84 billion, a P/E ratio of -364.10 and a beta of 2.22. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.66 and a current ratio of 2.37.

Semtech Company Profile

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.